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Reserve Bank of New Zealand Bill

Introduced on July 28, 2020. The Bill is part of the review of the Reserve Bank of NZ Act and follows the introduction of maximum sustainable employment as an objective of monetary policy alongside price stability, and the creation of the monetary policy committee. The Bill repeals and replaces the parts of the 1989 Act covering institutional form, governance and accountability arrangements, and central bank powers of the Reserve Bank. It creates a new governance board. The remainder of the 1989 Act, which creates a framework for the registration and supervision of banks, remains in force but is renamed the Banking (Prudential Supervision) Act. It includes new rules and reporting around the use of foreign reserves. First reading on Dec 8, supported by Labour, the Greens and ACT. ACT’s future support was reserved. National and the Maori Party opposed. National said the Bill undermined the independence of the central bank and placed too much power in the hands of the Finance Minister. The Maori Party did not speak to their position. Referred to the Finance and Expenditure Committee. Reported back on June 8 and second reading on June 23 with National, ACT and Maori Party opposed. Reserve Bank of New Zealand Bill